Strategic development in new market

Shops at 493

Case Study | Shops at 493

National retailers expanding to a growing-but-underdeveloped market

Ross Dress for Less and Burlington sought to open new stores of 25k SF and 40k SF respectively in the McAllen MSA along Interstate 2. They needed a high visibility power center with great access and at least 100,000 SF of national credit co-tenancy. McAllen is the retail hub for a population of more than 2 million people. McAllen is also in high demand from tenants, but lacks available space.

client

Ross Dress for Less & Burlington

Project Type

Power Center Retail Development

timeline

2 Years

The CHALLENGE

01.

High demand market with limited space

McAllen’s demographics perfectly align with our client’s growth strategy but there was no available space for their SF requirements.

02.

Clients required 100,000 SF of national credit co-tenancy

With big sales goals, our clients needed a solution that ensured high-volume traffic and long-term financial feasibility.

03.

Tight deadlines with capped budgets

Going from empty slate to grand opening on a tight schedule and capped budget meant there was no room for delays or cost overruns.

04.

05.

The solution

Leverage public-private partnerships to create value for all parties, including the City of Donna, Texas

Merit conducted extensive market research and site selection to identify a prime development site in the target area that met all of the retailers’ requirements. Negotiating and structuring lease agreements with other junior anchor national credit retailers brought synergy to the project. With strong partner relationships and proven strategies, Merit raised debt and equity at a cost that was financially feasible for all parties, including the City of Donna. Merit’s vertically-integrated platform positioned them to design and develop the shopping center efficiently and timely. Through their extensive experience, Merit was able to partner with the City of Donna to deliver a highly successful project for the tenants, the city, and investors.